Aliko Dangote has become a major source of inspiration for young entrepreneurs. They look up to him for business advice. This is because the billionaire has been able to exceed all expectations with his strategic business moves. Borrowing and actively implementing some of these business moves could be an answer to the earnest prayer of most entrepreneurs.
Described by Forbes as Africa’s richest man, Aliko Dangote has recorded strategic wins in the business world, because of various well-calculated moves. These moves, which can be traced to the beginning days of the African giant in the murky waters of business, have largely contributed to the success story of the billionaire. Here are five moves that may have contributed to Aliko Dangote’s success and made him a billionaire:
Entering new and untested markets
One of Dangote’s popular quotes reads, “Invest now before it’s too late. The train is about to leave the station..” This quote highlights the fact that there is no right time.
It also gives reasons why Dangote explores new and untested markets, without fear. A notable adventure of the billionaire in trying untested markets will be the cement industry in Ethiopia. Commissioned in May 2015, with rich limestone reserves of about 223 million tonnes, the plant produces high-quality 32.5 and 42.5-grade cement at competitive costs while addressing market needs. While he believes in making early investments, he also preaches that the most dangerous thing for an entrepreneur to do is to go into a business that he does not understand fully.
This means that Africa’s richest man moves into new and untested markets with a complete understanding of the strengths, weaknesses, opportunities, and risks attached to his move. It is also important to state that this move has helped him expand his business and reach new customers.
Embracing new technologies
Dangote has been quick to adopt new technologies in the management and expansion of his business. He introduced the use of natural gas as a source of fuel in his cement plants. This helped in the reduction of costs and increased efficiency. Technology is the next big thing and if there is any business move you must borrow from Dangote, this should be it. This is because the International Labour Organisation estimates that the shift to a greener economy could create 24 million new jobs globally by 2030 through the adoption of sustainable practices in the energy sector, the use of electric vehicles, and increasing energy efficiency in existing and future buildings.
Collaborating with competitors
Dangote once said “Don’t kill the competition, it is healthy for businesses. It keeps you the entrepreneur on your toes.” This belief spurs him into collaborating with his competitors to achieve mutually beneficial goals. These goals could range from working with other cement producers to address shortages in the market, maintaining the quality of products in circulation, and introducing new market trends.
Investing in people
Another notable business move of Dangote will be his strong belief in the people that constitute his workforce. This is highlighted in one of the beliefs handed down to him by his grandfather. It reads “My grandfather once told me; the soul of business is not making money but making people happy.” The African billionaire strongly emphasizes investing in his employees, providing them with training and development opportunities, and building a robust corporate culture. Borrowing this business move as an entrepreneur, will help you record success in your business and keep your organization in good books.
Giving back to the community
Closely linked to his belief in people, Dangote is well known for several philanthropic efforts, including supporting education, health care, and infrastructure projects in his home country, Nigeria. Notable examples include the recent donation of relief materials worth 1.5 billion to flood victims in the northern part of Nigeria, and the multi-million naira Cooperate social responsibility (CSR) launched by Dangote Cement Plc, Ibese Plant for his host communities. Also, the billionaire signed a Memorandum of Understanding to spend over N50 million in procuring Ready To Use Therapeutic Food (RUTF), for the treatment of children with Severe Acute Malnutrition (SAM), in Kano State. These donations have helped him build a positive reputation and strengthened his relationships with local communities.
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